Press Release No. 15/160

Press Release: Statement of an IMF Team at the end of a Mission to Côte d’Ivoire

April 3, 2015

A team from the International Monetary Fund (IMF) led by Mr. Michel Lazare visited Abidjan from March 18 – April 2, 2014, to conduct discussions on the seventh review of Côte d’Ivoire’s economic and financial program supported by an arrangement under the Extended Credit Facility (ECF).¹ At the conclusion of the mission, Mr. Lazare issued the following statement:

“The discussions on the seventh review ECF supported program have allowed the authorities and the IMF team to reach agreement, subject to approval by IMF management and the Executive Board, that the Ivorian government’s policies could be supported with a disbursement of SDR 48.8 million (about US$67.5 million or CFAF41 billion) under the IMF’s ECF arrangement. Executive Board consideration is expected in June 2015.

“Macroeconomic performance in 2014 remained strong, with low inflation and strong real GDP growth estimated at 7.9 percent, mainly driven by agriculture and the services sectors, despite underperformance in the energy sector. The overall budget deficit remained moderate at 2.3 percent of GDP, as the impact of a revenue shortfall was compensated by tighter public spending. All performance criteria and indicative targets at end-2014 under the ECF arrangement were met, except for the indicative target on budget revenue.

“Macroeconomic prospects for the 2015 and the medium term are positive, with real GDP growth expected to remain strong in a non-inflationary context. But this depends in part on continued favorable terms of trade, a sustained growth of private sector investment, and prudent management of public finances.

“The mission encourages the authorities to deepen progress toward improving the business climate and to accelerate the implementation of the financial sector reform strategy, including further restructuring of public banks. With regard to public finance, the mission welcomes the authorities’ plans to put in place a Treasury single account and to strengthen the financial situation of the energy sector that was worsened by the rapid fall of world oil prices and the appreciation of the U.S. dollar in 2014. The mission also welcomes the government’s intentions to finalize the clearance of domestic arrears and to strengthen procedures for the budgeting, execution and control of public expenditure with a view to avoiding extra-budgetary operations.”

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The IMF team thanks the Côte d’Ivoire authorities for their hospitality. The mission had constructive discussions with H.E. Mr. Alassane Ouattara, President of the Republic of Côte d’Ivoire; H.E. Mr. Daniel Kablan Duncan, Prime Minister and Minister of Economy, Finance and Budget; Ms. Niale Kaba, Minister at the Prime Minister’s Office in charge of Economy and Finance; Mr. Abdourahmane Cisse, Minister at the Prime Minister’s Office in charge of the Budget; Mr. Moussa Dosso, State Minister of Social Affairs, Employment and Vocational Training; Mr. Adama Toungara, Minister of Petroleum and Energy; Ms. Kandia Camara, Minister of Education; Ms. Raymonde Goudou Coffie, Minister of Health; Mr. Mamadou Sangafowa Coulibaly, Minister of Agriculture; other senior government officials, including from the Banque des Etats d’Afrique de l’Ouest (BCEAO) and the Banking Commission, as well as representatives of the business, civil society and donor communities.

¹ The arrangement was approved by the IMF Executive Board on November 4, 2011 (see Press Release N^o. 11/399) in the amount of SDR 390.24 million (about US$616 million or CFAF 308 billion).